India's Shoppers Stop posts consecutive quarterly loss on sluggish demand

Shoppers Stop

22/10/2024 15:03

Oct 22 (Reuters) - India's Shoppers Stop  SHOP.NS 
reported a loss for a second straight quarter on Tuesday, as
high inflation led customers to cut back on discretionary
spending.
    The department store chain saw subdued demand during the
second quarter due to fewer wedding dates, extended rains and
overall weak discretionary spending, its CEO Kavindra Mishra
said.
    Due to inflation concerns, consumers are prioritizing
essential goods and reducing spending on non-essential items
like apparel. India's retail inflation, which initially eased
year-on-year in July, accelerated in August and September.
    The company posted a consolidated net loss of 205.9 million
rupees for the quarter ended Sept. 30, compared with a profit of
27.3 million rupees a year earlier.
    Shoppers Stop's beauty and personal care (BPC) segment,
which makes over a fifth of its revenue, however, saw a 10% rise
in sales.
    India's BPC market, valued at around $28 billion in 2023, is
expected to reach nearly $47 billion by 2032, as per a report by
market research group IMARC.
    Overall revenue from operations rose 7% to 11.15 billion
rupees. Shoppers Stop houses products ranging from Vero Moda
clothing to Michael Kors watches.
    Shoppers Stop's larger rivals Tata Group-owned Trent
 TREN.NS , Arvind Fashions  ARVF.NS  and Aditya Birla Fashion
and Retail  ADIA.NS  have not yet reported their results.

 (Reporting by Ashna Teresa Britto and Manvi Pant; Editing by
Vijay Kishore)
 ((AshnaTeresa.Britto@thomsonreuters.com;))